Economic Growth

What improves peoples' living standards?

• Having more money.

• Being able to buy more goods and services.

• Having a command style economy.

• Having more businesses.

This reflects the value of goods and services produced in a year in a nation by an average person.

• G.D.P.
• G.D.P. per capita
• G.D.P. per person
• G.D.P. per product

Man-made resources used in the production process i.e. machines in a factory.

• Labour

• Household

• Capital

• Revenue

Which of these diagrams shows economic growth?

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What two factors are able to shift a PPF outwards?

• Higher prices and more demand for goods.

• Higher employment levels and less machinery.

• Higher output of goods and of services.

• Higher quality or quantity of resources and improved technology.

If GDP was $270 million and the population was 50,000, what would GDP per capita be?

• $47,650

• $13,500

• $5,400

• $185

If GDP increased from $3685 million to $3791 million in 1 year, what is the economic growth rate? (Note: the formula is the change divided by the original value, x 100.)

• 2.87%

• 3.42%

• 1.84%

• 2.35%

If a new factory was built by a company, what would be the effect on their PPF?

• Inward move of the frontier.

• Outward move of the frontier.

• Movement of the 'dot' closer to the frontier.

• Movement of the 'dot' away from the frontier.

What does productive capacity mean?

• The rate an economy is growing.

• The amount of goods and services produced.

• The maximum possible output of an economy.

• There is no unemployment.

What is the opportunity cost of change output from Point A to Point B?

• 10 cameras

• 20 cameras

• 7 mobile phones

• 1 mobile phone